Case summary: Person DB was a director in company FBF which owned a string of fitness clubs in Mexico. DB owned 15 percent of the total stock of the company and was also working as a tanning technician at one of the fitness clubs. According to the finance report, company FBF was facing financial loss. Person ML discussed terminating the tanning operation. Person DP, who was one of shareholders disclosed that person DB, owned stock in the company S, from which company FBF purchased required tanning equipment. DB and MV owning 37 percent of FBF and also holding shares of the company S, voted to replace ML from the board of directors.
To find: The theory that will be used by person DB as his defense.
Trending nowThis is a popular solution!
Chapter 18 Solutions
The Legal Environment of Business: Text and Cases
- What is the maturity value of the note on Mar.1?arrow_forwardMarcos is the sole owner and operator of Great Jet Company. As of the end of its accounting period, December 31, Year 1, Great Jet Company has assets of $995,000 and liabilities of $277,000. During Year 2, Marcos invested an additional $49,000 and withdrew $36,000 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $878,000, and liabilities were $260,000?arrow_forwardPlease provide the accurate answer to this general accounting problem using valid techniques.arrow_forward
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education